Loan fee added to loan

Megsdickyisland

I took a loan out some years ago with the Halifax, looking at the paperwork they charged me a £95 administration fee. This fee was automatically added to the loan and no option to pay upfront.
The wording in paper work is, you have to pay the loan, administration fee and interest.
So anyone know if they would have charged interest on the fee, and would they have actually been allowed to do this?

[Deleted User]

Probably and yes.

dunstonh

This fee was automatically added to the loan and no option to pay upfront.

Not unusual and nothing wrong with that.

So anyone know if they would have charged interest on the fee, and would they have actually been allowed to do this?

yes, there would likely have been interest and yes they are allowed to do it.

The reason they issue an agreement with the figures on is to query anything you are not sure of. If this was an issue for you then you could have borrowed £75 less.